Tax and the City: October 2011 update

The European Commission publishes its proposal for an EU-wide Financial Transactions Tax notwithstanding UK opposition.

The UK and Switzerland have signed a Tax Agreement designed to flush out UK residents with assets hidden in Swiss accounts or subject them to withholding tax – an exodus from Switzerland is expected before the agreement comes into effect next year.

HMRC has acted to close down MODs based avoidance.

The Netherlands is to grant full refunds of dividend withholding tax to tax-exempt entities.

The taxpayer fails to establish the existence of a loan relationship in MJP Media but FCE Bank’s success continues in its case on treaty non-discrimination article.